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Oracle To Buy Siebel

jondaw writes "The BBC is reporting that "Software giant Oracle is buying US rival Siebel Systems in a deal worth $5.85bn (£3.2bn) in cash and stock...'In a single step, Oracle becomes the number one CRM [customer relationship management] applications company in the world,' said Oracle chief executive Larry Ellison.""

51 of 233 comments (clear)

  1. yay dotcom bubble by Anonymous Coward · · Score: 5, Funny

    Everybody's buying everybody again! Woo!

    When do I get my office scooter?

  2. Oracle by DavidLeeRoth · · Score: 3, Insightful

    I might be mistaken but, isn't Oracle a US company? The story makes it seem like Oracle isn't.

    1. Re:Oracle by fm6 · · Score: 3, Insightful

      Why? Because they referred to Siebel as a U.S. company, but didn't specify that Oracle was? That's natural for a British news source -- their local readers may not have heard of Siebel, but have certainly heard of Oracle, which does a lot of business in Europe.

    2. Re:Oracle by angle_slam · · Score: 2, Informative

      Yep, both companies are headquartered in San Mateo County, California. They are two exits away from each other on the 101.

  3. In other news... by COBOL/MVS · · Score: 5, Funny

    To compliment his German accent, Larry Ellison has also donned a monical and top hat and is now carrying a cane with a silver cobra head on it and was last seen wearing a black flowing cape. He was quoted as saying: "I'm just trying to look the part of evil genius now".

    --
    GOBACK.
    1. Re:In other news... by Agrippa · · Score: 2, Interesting

      Actually, Larry Ellison has already created himself an altered reality - he fancies himself an ancient Shinto warrior. Among other things, he decorates his houses like he is a shogun and he shaves off his eyebrows.

      Don't believe me? Do a google image search for Larry and look at his eyebrows.

      .agrippa.

    2. Re:In other news... by grammar+fascist · · Score: 3, Funny

      "To compliment his German accent,"

      Now where are the language lawyers of slashdot?

      I dunno - this might work. I can imagine Larry Ellison walking around saying, "Why, Accent, you sure are a thick Germanic thing!" and then "Danke! Ich ben einer burly!"

      He's weird enough.

      --
      I got my Linux laptop at System76.
  4. Monopoly A Game Of Life w/ Shoots and Ladders by Cylix · · Score: 4, Funny

    Sure, our product hasn't been that good, but don't worry in no time at all you won't have any choice. We've been fattening our wallets to make sure you don't have any complicated decisions ahead of you.

    Why is this a trend I continue to see in Oracle?

    I'll probably get flamed by the Oracle is holier then thou crowd, but that's life.

    Where did I leave my ladders at...

    --
    "You should always go to other people's funerals; otherwise, they won't come to yours." -- Yogi Berra
    1. Re:Monopoly A Game Of Life w/ Shoots and Ladders by deathy_epl+ccs · · Score: 2, Insightful

      mini NOTHIN'!

  5. How does this benefit customers? by juanescalante · · Score: 3, Interesting
    Oracle said the deal had the approval of the Siebel board and that the takeover was expected to be completed in 2006, subject to regulatory approval.
    It also said that the customers of both firms had long called for them to come together.
    Why would this benefit their customers?
    1. Re:How does this benefit customers? by sloanster · · Score: 3, Interesting

      Oh, I dunno... maybe finally, some semblance of linux support for siebel apps?

    2. Re:How does this benefit customers? by mroch · · Score: 2, Interesting

      It's the same as Microsoft's "we have to package IE with Windows" argument.

      This article has more details. Basically, customers only want to deal with one "suite," but Oracle and Siebel do slightly different stuff.

    3. Re:How does this benefit customers? by ideonode · · Score: 4, Insightful

      I agree. I think Oracle can really position themselves as a market leader in the enterprise space, leaving only SAP as the main rival.

      Oracle are in a position to provide a full-blown OSS/BSS stack (once they finally ship their billing system product). If they can bring the integration between the various apps in their business stack in-house, they get that close coupling (which may be a few years off, admittedly), then they can truly offer a Telco-in-a-Box solution, covering CRM, Billing, Payments and industry-standard hooks to third-parties. This All-in-One shop can be repeated for the other industry verticals that Siebel are traditionally strong in (Energy and Utilities, Financial Services etc).

      To be honest, the people who should be worried are third-party systems integrators. Once Oracle provide a single-shop BSS/OSS solution, then a large chunk of integration income will disappear.

  6. Siebel problems by Zen · · Score: 5, Interesting

    Well, I don't know about the rest of you, but I've been on a two week long troubleshoot call for Siebel problems, and today starts the third week. 8-12 hours a day, 100's of different _sets_ of sniffer traces, and no solution. The problem is in the application, not on the network. I am not familiar with Oracle's technical support, but it can't be worse than Siebel's, so I'm looking forward to this.

    1. Re:Siebel problems by CptMatt · · Score: 5, Interesting

      Oracle's support for mundane problems is as bad or worse than everyone else. However, on critical problems they are far better than most.

    2. Re:Siebel problems by frank_adrian314159 · · Score: 2, Insightful
      I am not familiar with Oracle's technical support, but it can't be worse than Siebel's, ...

      Oh you naive fool!

      ... so I'm looking forward to this.

      Wait a couple weeks - you won't be anymore.

      Has the parent post been modded funny yet?

      --
      That is all.
    3. Re:Siebel problems by 42.5 · · Score: 3, Informative

      I've dealt with both Siebel and Oracle as a system implementor and someone using their tech support. Oracle's support is better.

      Siebel is notorious for asking your for more and more data until you reach the point of diminishing returns and just give up. We had to find so many work arounds to Siebel bugs I knew more than some Siebel product managers.

      This will help Siebel customers because the code will improve, cost less, and support more platforms. Plus the Siebel applications will be able to compete with Salesforce.com now.

      --
      Non illegemati carborundum est!
    4. Re:Siebel problems by alekd · · Score: 2, Informative

      I find that Oracle support varies a lot from product to product. The smaller products seem to have better support than the bigger ones.

      The quality also varies with what time you log the support request. For the best responses try to enter the request when India is asleep. I do not why the Indian techs are so bad, but I suspect it has something to do with the churn they have in India, people quit before they become halfway competent. Another big problem might be the incentives Oracle are offering. It seems that some of them in a mad dash to get the support request away from themselves only give the request a cursory glance and enters an almost random question.

    5. Re:Siebel problems by ducttapekz · · Score: 2, Funny

      Oracle has Tars, the most evil, tedious thing ever. It makes it take at least a half an hour to ask any question or to report a Mission Critical error. They also have meta-link which has the worst search engine known to man. Other than that, there support is great.

  7. Decision Made Simple by CSHARP123 · · Score: 5, Funny

    We made decision making process easier for you. You either buy oracle or you buy oracle.

  8. Oracle buys Siebel - visualizing the buzz by otisg · · Score: 4, Informative

    Today is a big shopping day, and when that happens I love watching the buzz spread. Here are some graphs that show the spreading:
    - eBay AND Skype
    - Oracle AND Siebel.
    - the above graphs combined.

    --
    Simpy
  9. Not Dead Yet. by Short+Circuit · · Score: 4, Interesting

    Oracle bought PeopleSoft a while back, and I haven't yet heard of any resultant headaches at the college I attend and work at. (PeopleSoft+Oracle setup.)

    But that may be because of those coupons PeopleSoft issued while trying to avoid the buyout; they gauranteed the same level of support for some period of time I don't recall. It sounds like Siebel is going willingly, so I doubt their customers will get the same protection.

    1. Re:Not Dead Yet. by lucabrasi999 · · Score: 4, Interesting

      When Oracle first announced the hostile attempt at PeopleSoft, Larry put his foot in his mouth by announcing that he would stop all future PeopleSoft development and he would make all PeopleSoft customers switch to Oracle. When you consider how much money customers have spent on the ERP systems, you can understand why most PeopleSoft customers were initially frightened of the Oracle buy-out. No customer in their right mind would want to be forced into an unplanned for migration to Oracle apps./p>

      When Oracle finally completed the deal, they announced that not only would they continue to support PeopleSoft, but they would release a new version (in about three years) that would allow for a direct upgrade from PeopleSoft to a combined Oracle/PeopleSoft product. In other words, Larry learned that the customer is always right.

      I seriously doubt that Larry will suddenly 'pull the support plug' on Siebel customers. Chances are rather high he will do the same thing with Siebel that he plans to do with PeopleSoft. Continue to provide support for a few years while developing an upgrade path that will allow Siebel users the chance to move to a future Oracle CRM product.

  10. Oh dear by gunpowda · · Score: 3, Funny
    Is anyone else struck by the suggestiveness of the extended metaphor on this other news site reporting on the story?

    "Siebel has needed to be picked up for some time. There are other suitors that would probably have made better sense, but it seems that Oracle is going for the number one slot no matter what the cost and aiming to become the only boy on the CRM block..."

  11. Ellison by SuperBanana · · Score: 4, Funny
    In a single step, Oracle becomes the number one CRM [customer relationship management] applications company in the world,' said Oracle chief executive Larry Ellison."

    ..."then Oracle Chief Executive Ellison brandished his katana and with a scream, cut the CEO of Siebel in half"

    1. Re:Ellison by KingEomer · · Score: 2, Funny

      Now the question is: Would Steve Ballmer, with his Executive Chair, beat the katana-wielding Larry Ellison?

  12. Oracle is in the database business by crovira · · Score: 3, Informative

    These acquisitions insure that their database business doesn't suffer by suddenly NOT being offered (unlikely but always a possibility [and if I was selling DB/2, I'd worry,]) or that some NEW database engine gets a foot hold in the marketplace (more likely.)

    We're seeing the death of competition in the database market.

    --
    MSBPodcast.com The opinions expressed here are my own. If you don't like 'em... Think up your own stuff.
  13. So? by canfirman · · Score: 2, Funny
    I'll be impressed when Oracle comes out with an announcement that it's buying MicroSoft.

    Then I'll be impressed.

    --
    It is not our abilities that show what we truly are... it is our choices.
    1. Re:So? by WillAffleckUW · · Score: 2, Funny

      I'll be impressed when Oracle comes out with an announcement that it's buying MicroSoft.

      Won't happen. Larry's too interested in winning the World's Cup in yatching for that to happen.

      Besides, it rains too much up here.

      --
      -- Tigger warning: This post may contain tiggers! --
  14. Another dotcom bubble? by RealisticCanadian · · Score: 2, Funny


    Should I start hoarding supplies for the next crash?



    Hmmm... welcome to Slashzonk; all Zonk all the time. (What, 13 articles in a row? and no screwups? they musta upped his caffeine dosage) 8^p

    --
    A couple fans told me that my last journal entry was mint; give it a shot. Hope you like.
  15. Re:Acquisitions by $RANDOMLUSER · · Score: 2, Funny

    Same thing we do every night Pinky, plan to take over the world!

    --
    No folly is more costly than the folly of intolerant idealism. - Winston Churchill
  16. I'm curious ... by scint · · Score: 2, Interesting

    as to what this means for IBM and their service based model. Does the concentration of big ticket erp system portend an end for db2?

  17. Re:CRM [ ] by plover · · Score: 5, Insightful
    Don't get your hopes up at knowing what the acronym really means. Siebel is to "Customer Relationship Management" exactly as much as Microsoft is to "Secure Systems Initiative." Neither title has anything to do with reality, but rather how they're perceived by the Gartner Group.

    When they were still in business, AT&T Wireless used to use Siebel CRM in their phone stores. They did everything in their power to lose all the customers they could. A one hour wait and two hours with a cashier to sell me three phones, all spent waiting for the cashier to click, drag, type, badger and bully my information into that worthless CRM system. Servers that took minutes to deliver the pages needed. And it wasn't the fault of the poor schmucks who worked at the store. Just imagine trying to do your job on a site that was being permanently slashdotted -- that's what I saw of Siebel CRM, every time I went in there.

    And now Larry is sticking them in his cap like a feather. Well, good for them. I'm sure the Gartner Group is pleased as punch.

    --
    John
  18. Both make consultingware by MarkEst1973 · · Score: 4, Interesting
    Both companies make products that are HUGE! So big that they require fulltime administrators and/or consultants.

    My question is: Who actually needs all this bloat? There are much simpler ways of implementing a solution that would work while saving on the license fees and consultants.

    I work for a government contracting shop in Northern VA. We're living high on the government hog, and one of our clients wanted to implement Documentum. This product is so big, they've created entirely separate applications (each measuring many megs in size) just to install and configure the application. As a programmer, I am frustrated trying to maintain this. Why can't it Just Work(tm) when you drop a WAR file into the /webapps directory (Documentum is java-based, and their webtop application's WAR is 128mb).

    Consultingware is a phenomenon that I just don't understand. Our client has no need for 90% of Documentum's functionality. They just wanted to share files on the web. They've spent millions on servers, licenses, and consultants (including my company) to install and maintain it. I could have written something much smaller that fit their needs, and saved them most of their money.

    I don't know, maybe this is just a gripe. But when something feature-rich like PostgreSQL is available and you're hiring talented coders to maintain a HUGE application instead of writing a very small and lean one... well, I just don't get it.

    Every line is code comes with a price tag. The less code the better. The smaller and simpler solution the better. Less is more. This is important when you're trying to keep costs low and compete in a competitive marketplace, which I suppose is not happening with a gov't client or a big honking corporation.

    But I don't expect everyone (anyone?) to agree with me.

    1. Re:Both make consultingware by tetrode · · Score: 3, Insightful

      Mark

      We all agree with you here. This is slashdot. But the outside world does not. They want to be sure that they can slash someone's balls in two when it does not work.

      That's the way the world works, Mark. I know - I was sorta in the same position as you. It isn't a nice view from there. But hey, this is what they want. I used to tell them, you know, you can get this for cheap. Just let me install this that & the other. No problem, no questions asked.

      But no - they don't want no hippy-communist free software that works, just let me have some of your ultime-megalomanic pieces of sh*tware that will take for ages to load. And then crashes or just does not work.

      While with open source, I have it all in my own hands - and I can fix problems within hours. But oh-no we don't want to fix problems fast. We want problems fixed reliably. If you tell me that you don't know when this problem will be fixed, but you're working on it, you are a bad, bad boy. On the other hand, when you tell me that the problem will take some two weeks investigating, then three weeks bug fixing and one other week in quality assurance (what a laugh) - so in total 6 fricking weeks to fix a silly little bug, they are very happy because it is all done via their fucked up ITIL standard.

      I'm going to put my straight-jacket on again - the docters are coming soon.

      Mark

  19. Tom Siebel by kevin_conaway · · Score: 2, Interesting

    Interesting enough, Tom Siebel, the founder of Siebel, was once an ex-Oracle exec. I believe he left under less than pleasant terms.

    1. Re:Tom Siebel by bigmaddog · · Score: 2, Informative

      An amusing anecdote:

      I worked at Siebel a long time ago, briefly. I am not aware of the details of what went down between Tom Siebel and Oracle, but he didn't like them very much and this was common knowledge. So, we had a some sort of company-wide meeting, where the execs orated at length about various things I no longer remember. This was webcast to all the remote offices, so we got to watch. At one point, while discussing the goals of Siebel for the next little while, Tom muttered, half under his breath, that they hope to complete the transition from an Oracle to DB2 as soon as possible. This wasn't meant to be funny but the entire auditorium (a few hundred people at least) howled. Truly, a high point in any meeting. He looked rather unhappy.

      --

      Even as you read this, your pants are strangling your loins! Aaa!

  20. Number one CRM company? by jayloden · · Score: 3, Insightful

    Oracle is now the number one CRM company? What about SAP? They're so big and so dominant in their market that their product gave CRM systems the name "CRM" in the first place

    Just a thought...

  21. Re:i don't understand by $RANDOMLUSER · · Score: 4, Funny
    Siebel sells best-of-breed soutions to snyergysticly leverage your existing best-practices methedologies into world-class feature-rich infrastructure enhancements with significantly accelerated ROI.

    Or somethng like that.

    --
    No folly is more costly than the folly of intolerant idealism. - Winston Churchill
  22. What next by sapbasisnerd · · Score: 5, Interesting

    I imagine the phone lines between Armonk and Walldorf and Redmond and Walldorf are pretty busy now. Now that this penny has dropped IBM has got to be running the calculus on how much they can afford to tick off Oracle by buying SAP. As things are today IBM does much more business with SAP than they do with Oracle so I'm guessing there's about a 50% chance they will enter the game now.

  23. Re:i don't understand by tekboy25 · · Score: 2, Funny

    eHas eAnyone eEver eRead eSiebel eSales eLiterature?

  24. Who's next for Oracle? by $RANDOMLUSER · · Score: 3, Interesting

    They seem to be buying customers now.
    My guess is their next takeover target is Computer Associates. CA seems pretty ripe for the pickin'.

    --
    No folly is more costly than the folly of intolerant idealism. - Winston Churchill
  25. Check Siebel website! -OOPS! by quark007 · · Score: 4, Informative

    On the Siebel home page they describe the advantages of the merger i.e. better customer satisfaction..blah..blah blah..
    But check out this on Siebel website. It has several comments on how the PeopleSoft/Oracle merger is bad for customers.
    Just as an example: Peoplesoft/ORACLE merger is a loss for the CRM market.
    Someone better feed these web-developers to clean up the pages!
    How about some anti-trust/ monopoly action?

    --
    - Sh!t
  26. If this benefits customers, is it just open source by WillAffleckUW · · Score: 4, Interesting

    Oh, I dunno... maybe finally, some semblance of linux support for siebel apps?

    Possibly, since Oracle just released the Win version of ORACLE 10g only two months AFTER releasing the Linux and Unix versions.

    Remember, with Larry, it's personal. If he has to encourage Linux to beat Bill, he'll do it. And IBM must be ROFLMAO at this new turn of events, even if they compete, they still get Linux to eat Win shorts.

    --
    -- Tigger warning: This post may contain tiggers! --
  27. Avalon Business Systems by Johnso · · Score: 2, Interesting
    My growing consulting business considered Oracle, Siebel, and other CRM suites but decided to go with Avalon Management Suite from Avalon Business Systems. It handles all of our contacts, invoicing, inventory, and more.

    It way exceeded our expectations. It's a nicer web-based solution without all the bloat. Oh, and it cost us a fraction of what the other products would have.

    --
    I'm a signature virus. Please copy me to your signature so I can replicate.
  28. Reads the news... by Linker3000 · · Score: 2, Insightful

    ...completes update to SugarCRM installation...shrugs shoulders...

    --
    AT&ROFLMAO
  29. How is this a bubble? by PCM2 · · Score: 4, Insightful

    The market is actually contracting. Oracle buying up competitors means fewer vendors. How is that indicative of a bubble?

    If there were three dozen new CRM start-ups appearing every few months -- backed by venture funding, going IPO, and then evaporating when everyone realized they didn't even have a product, let alone a chance of competing with the Oracles and SAPs of the world -- then that would be a bubble. This, on the other hand, is what we call consolidation. If anything, it's a sign that the enterprise applications companies are being realistic.

    --
    Breakfast served all day!
    1. Re:How is this a bubble? by PCM2 · · Score: 2, Insightful

      Again, getting bought is the smart choice. Thinking you'll get rich by taking your start-up to an IPO is the bubble mentality.

      Will spending all that money hurt eBay and Yahoo in the long run? Maybe, if they can't figure out a way to profit. But eBay and Yahoo are both well-established companies. If it's really a second dot-com bubble, do you really think eBay and Yahoo will be the first ones to go when it pops?

      eBay bought Skype for $2.6 billion. AOL bought Netscape for $4.2 billion and what happened there? AOL went out of business? Not yet, and if it does that wouldn't be why. The Netscape browser technology disappeared? Not yet, in fact last I heard everybody was jumping off IE to use Firefox.

      Could eBay have built its own P2P VoIP and IM system for less than $2.6 billion? Maybe, but who's done it so far? Skype probably has 1.) patents eBay would need to license; 2.) talent the likes of which eBay would need to build its software; 3.) engineering already done, while eBay would need to spend money on that; 4.) brand presence, which eBay would need to fight for once its solution was finished, years from now; 5.) existing customers, which makes its solution worth using vs. an untried competing product from eBay; 6.) and so on, and so forth.

      You say it was an inflated amount. But then, you haven't looked at the books of either company.

      --
      Breakfast served all day!
  30. Re:Oops by rfreynol · · Score: 2, Informative

    Oracle is a US company based in Redwood Shores, CA.

    Siebel is a US company based in San Mateo, CA.

    SAP is the German player in the ERP/CRM market.

  31. How big an asshole Ellison has to be... by otis+wildflower · · Score: 4, Insightful

    .. Did anyone else notice that all these CRM companies seem to be founded and/or run by ex-Oracle people?

    What kind of $$$ would Oracle have saved if their culture had enabled CRM apps to be developed inhouse instead of having Oracle people quit and go out on their own?

    (Or was the push out of Oracle necessary to do CRM in the first place?)

  32. Re:Scopus by joe094287523459087 · · Score: 2, Interesting

    yeah i worked at scopus, which was acquired by siebel, so i became a siebel employee.

    they were polar opposities in every way

    scopus was founded by a programmer
    siebel was founded by a salesman

    scopus was lax on dress code
    siebel had a strict dress code

    scopus was a very laid-back organization. one indian programmer i had to work with insisted on working 4 hours a day - midnight to 4am.
    siebel had an unwritten rule that 10 hours was barely acceptable, and most people worked 12+ hours

    scopus had no rules about your work area
    siebel had a bunch of rules, basically amounting to No Personal Items In Sight - no posters, no toys, not even a soft drink on your cubicle desk

    scopus was a technically innovative product with cool stuff under the hood and a small(ish) footprint
    siebel was bloated and clunky and gigantic

    scopus was user-unfriendly because of lack of documentation and lack of consistency (naming standards, etc.)
    siebel had every tiny little widget fully documented and uber standardization

    scopus was run by a nice guy who was loyal to his employees and gave a lot of money to charities
    siebel was (is) run by an arrogant asshole

    what really got to me at siebel was the way the whole company has 2-3 marketing filters. it was suffocating because of all the sales-marketing bullshit encrusted onto everything.

    for example, IN THE SOFTWARE PRODUCT, when you were making a new project, you had to create "Business Objects." WTF why were they called "Business Objects"? because it appealed to the C_O crowd and gave them little hard-ons to see words they recognized instead of confusing technical stuff. the whole product was like that - full of little marketing flair where there should have been efficient user tools/labels/whatever.